LLY is now overvalued and could go down -42%

Based on our analysis, Eli Lilly and Company has received an overvalued rating of 1 out of 5 stars from Cashu. Several key financial ratios indicate that the company's valuation is significantly higher than industry norms, which raises concerns about its current market price. The Price-to-Earnings (PE) Ratio for Eli Lilly stands at an elevated 66.20, compared to the sector average of 15.91. A high PE ratio suggests that investors are paying a premium for each dollar of earnings, which may not be justified given the company's performance relative to its peers. Additionally, the Price-to-Book (PB) Ratio for the company is 51.64, while the sector average is just 2.71. This indicates that the market values Eli Lilly's equity much more highly than the actual book value of its assets, suggesting potential overvaluation. Moreover, the Dividend Yield for Eli Lilly is currently at 0.66%, significantly lower than the sector average of 1.32%. A lower dividend yield may indicate that the company is not returning as much value to shareholders in the form of dividends, which could be a concern for income-focused investors. In conclusion, the combination of a high PE ratio, an elevated PB ratio, and a lower-than-average dividend yield raises questions about the sustainability of Eli Lilly's current market valuation. Investors should consider these factors when evaluating the company's stock. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.